Monday, 19 September 2016

Here's what else we import from Mexico

By on 10:45

Get ready to pay more for beer and tomatoes if Donald Trump gets elected president.

Trump revived his promise to levy a 35% tariff on goods imported from Mexico on Thursday. He unleashed a tirade against Ford Motor Company (F) on Fox, saying he would make the automaker pay if it shifts jobs south of the border.
There's no question America imports a lot of cars and car parts from Mexico. The U.S. brought in $24 billion worth of motor vehicles from Mexico last year, making it the top product and accounting for 8% of total imports from Mexico, according to the United Nations Commodity Trade Statistics Database. The broader category of vehicles, parts and accessories totaled $75 billion, or 25% of all products from Mexico.
Related: Trump's 35% Mexico tax would cost Ford billions and hurt Americans
But the U.S. gets a whole lot more than just cars from its southern neighbor. It is our third largest supplier of goods overall, according to the Office of the United States Trade Representative.
The imports include finished items that can hit store shelves or showrooms and parts that American manufacturers use to produce other goods, said Robert Lawrence, a professor of international trade and investment at Harvard's Kennedy School of Government. We also import a lot of oil from Mexico.
It's not clear just how extensive Trump's tariffs would be. But even the threat of an additional levy on products can send shivers through American firms. And it would interfere with the vast supply network between the two countries, Lawrence said.
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Get ready to pay more for beer and tomatoes if Donald Trump gets elected president.

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